Mountain of cash - Column by John Horgan in San Mateo Times
WARY taxpayers in the San Mateo Union High School District have to be keeping their fingers crossed these days. The district's handling of financing aspects of projects related to a $137 million construction bond issue approved by voters in 2000 has been less than stellar. In a nutshell, by borrowing needed money to be repaid with anticipated revenues that didn't pan out as projected, the district is in a bind. Again.
Last week, its trustees considered a proposal to bundle the district's loans, trimming the first-year payment to $475,000. It is expected that the board members will vote on the arrangement March 8. But that's not all. The $137 million bond measure is not alone. Last November, the generous citizenry went even further. In an act of somewhat surprising faith, they voted to OK another massive district bond package, in spite of strong evidence of fiduciary fumbling. That one was for a whopping $298 million. So, now, the district and its officials are dealing with what amounts to a mountain of moolah, a grand total of $435 million. The figure especially when you factor in interest payments of perhaps $350 million or so is really quite stunning. And the question becomes: If the district's policy-makers found themselves flummoxed by the twists and turns of dealing with the first bond, what happens with the second one? Fortunately, the district is getting some help. The San Mateo County Office of Education is monitoring all of this very carefully. Thank goodness. The stakes and the public dollars involved are large. And confidence in the district's ability to deal with that pile of cash is ebbing away quickly.
CRESTMOOR HIGH Still on the subject of the high school district, it has been noted that one of the properties used as loan collateral has been Crestmoor High School. The San Bruno campus hasn't been used as a comprehensive secondary institution since 1980. The district hasn't made a concerted effort to sell off even a portion of the acreage for many years. But, if Crestmoor is collateral, then it must have value as real estate. Why else would a lender agree to the loan? Perhaps it's time to take another look at Crestmoor. In the past, San Bruno officials have opposed any development on the site. District Superintendent Sam Johnson has steadfastly indicated that Crestmoor is a resource he doesn't want to lose. But, who knows, maybe times and financial pressures have changed in this regard
WARY taxpayers in the San Mateo Union High School District have to be keeping their fingers crossed these days. The district's handling of financing aspects of projects related to a $137 million construction bond issue approved by voters in 2000 has been less than stellar. In a nutshell, by borrowing needed money to be repaid with anticipated revenues that didn't pan out as projected, the district is in a bind. Again.
Last week, its trustees considered a proposal to bundle the district's loans, trimming the first-year payment to $475,000. It is expected that the board members will vote on the arrangement March 8. But that's not all. The $137 million bond measure is not alone. Last November, the generous citizenry went even further. In an act of somewhat surprising faith, they voted to OK another massive district bond package, in spite of strong evidence of fiduciary fumbling. That one was for a whopping $298 million. So, now, the district and its officials are dealing with what amounts to a mountain of moolah, a grand total of $435 million. The figure especially when you factor in interest payments of perhaps $350 million or so is really quite stunning. And the question becomes: If the district's policy-makers found themselves flummoxed by the twists and turns of dealing with the first bond, what happens with the second one? Fortunately, the district is getting some help. The San Mateo County Office of Education is monitoring all of this very carefully. Thank goodness. The stakes and the public dollars involved are large. And confidence in the district's ability to deal with that pile of cash is ebbing away quickly.
CRESTMOOR HIGH Still on the subject of the high school district, it has been noted that one of the properties used as loan collateral has been Crestmoor High School. The San Bruno campus hasn't been used as a comprehensive secondary institution since 1980. The district hasn't made a concerted effort to sell off even a portion of the acreage for many years. But, if Crestmoor is collateral, then it must have value as real estate. Why else would a lender agree to the loan? Perhaps it's time to take another look at Crestmoor. In the past, San Bruno officials have opposed any development on the site. District Superintendent Sam Johnson has steadfastly indicated that Crestmoor is a resource he doesn't want to lose. But, who knows, maybe times and financial pressures have changed in this regard
- Written by Fiona
"its trustees considered a proposal to bundle the district's loans, trimming the first-year payment to $475,000."
How can a district that owes $73 million only pay $475,000 per year in payments toward the loan? What are the size of the loan payments in the future?
This is very misleading. Is it that in the first year, only an additional $475,000 beyond the developer's fees will be needed?
Why are the developer's fees going to construction and not into the classroom as intended.
Even if developer's fees can go into construction, why would we use these for construction when they are better used for the classroom. We approved bond money for construction.
Posted by: KRN | February 12, 2007 at 07:33 PM